News

Nov 21, 2024, 09:24 AM by Amelia Pearce

According to Bacon Universal and Kubota Tractor Corporation there may be no better time than now to invest in the equipment you need.

By utilizing Section 179, a tax incentive designed for businesses to immediately deduct the full cost of qualifying equipment, businesses can maximize their tax savings and improve cash flow.

In 2024, Section 179 allows businesses to deduct up to $1,160,000 on eligible equipment, with a phase-out threshold set at $2,890,000. This means that businesses can invest in the tractors, loaders, excavators, RTVs and other equipment they need now, while benefiting from substantial tax savings. Unlike traditional depreciation, which spreads the deduction over several years, Section 179 provides a full deduction in the same tax year, offering immediate financial relief and flexibility.

In addition, businesses can finance qualifying Kubota equipment to amplify Section 179’s benefits. With Kubota's financing options—such as zero or low-interest rates on many models—businesses can acquire the equipment they need while preserving their cash reserves. Financing allows them to deduct the equipment’s full price even if it hasn’t been fully paid by year-end, creating a powerful return on investment with minimal upfront expense.

Jamie Spellman, Western Division Finance Product Manager at Kubota Credit Corporation, emphasizes the timeliness of these offers, stating, “In the current climate, our zero percent financing options are making it more affordable for agriculture and other essential industries to access the equipment they need. When combined with Section 179, and possibly bonus depreciation, there may be no better time to invest in the equipment essential to running and growing their businesses. Please consult and confirm with your tax advisor.”

To qualify for Section 179 in the current tax year, equipment must be purchased, financed, or leased and put into service by December 31. Contact Bacon Universal to learn more about Kubota’s latest financing promotions and take advantage of these savings opportunities. 

Note: Limitations under Section 179 may apply. Consult a qualified tax professional for advice on your specific situation.